actualy I do complete the quests but i'm just wondering after completing the quest and several levels later, that item is no longer as good. What do I do with it?
Which items are you talking about? Some (like the haku ceremonial blade) have uses later, and some don't.
SWC
Sir Edmund:"Should you obey the lord who asks you to put a village of innocents to the torch? Is that chivalrous? Is it noble?" Me:"It's a great way to get promoted, I know that much."
does the hak'u blade have any use once you get to the town of Kalrathia? I have the heirloom sword and Arinth's Staff, should I just dump those somewhere?
You can upgrade the haku blade in the Easter Egg area, so you might want to hang onto it. For the other two weapons, if you've completed all the act 2 sidequests, then you can drop them at any time.
SWC
Sir Edmund:"Should you obey the lord who asks you to put a village of innocents to the torch? Is that chivalrous? Is it noble?" Me:"It's a great way to get promoted, I know that much."